30/07/2013 World Business Report


30/07/2013

Similar Content

Browse content similar to 30/07/2013. Check below for episodes and series from the same categories and more!

Transcript


LineFromTo

is. Now it is time for World The black hole. How much more money

:00:22.:00:27.

will BP need to set aside to cover claims over the Gulf of Mexico oil

:00:27.:00:32.

spill disaster. It releases results today.

:00:32.:00:37.

Imagine living in a flak like this. It is the reality for many people in

:00:37.:00:47.
:00:47.:00:49.

Hong Kong. Welcome to World Business Report.

:00:49.:00:55.

Also in the programme, US regulators accused JP Morgan of manipulating

:00:55.:01:01.

the energy markets in California. We have the details for you. But first,

:01:01.:01:04.

many of the world's biggest oil companies are reporting their

:01:04.:01:14.
:01:14.:01:16.

figures. BP stands out for the length of the shadow cast by its

:01:16.:01:24.

disastrous spell in the Gulf of Mexico, back in 2010. The company is

:01:24.:01:27.

expected to set aside yet more money to pay for the damage caused and

:01:27.:01:33.

cover claims for a compensation. It has earmarked $8.2 billion to pay

:01:34.:01:39.

for the damage from this event. It warned its 1st-quarter results that

:01:39.:01:45.

the figure could significantly too little. It has been ordered to pay

:01:45.:01:49.

hundreds of millions of dollars, soon likely billions, for a

:01:49.:01:55.

fictitious and inflated losses. It has gone to the US courts in its

:01:55.:02:04.

legal battles. It is far from over. It is likely to be given until at

:02:04.:02:11.

least 2014. Time to get some analysis from an energy analyst at

:02:11.:02:16.

Schneider Electric. What are you expecting BP to tell us today? In

:02:16.:02:24.

terms of profits, the statement is likely to be a little down from last

:02:24.:02:30.

time. About $3.5 billion. That is down from last year. People will be

:02:30.:02:34.

looking very much to an update on some of the things you have

:02:34.:02:41.

mentioned. It could start hitting earnings. Looking at the

:02:41.:02:44.

compensation claims, when the event happened three years ago, we all

:02:44.:02:49.

knew that it would be hard to measure the financial fallout of

:02:49.:02:57.

this. Where are we at? In total terms, they have probably allocate

:02:57.:03:07.

it and spent most of $40 billion. That is in terms of the total cost.

:03:07.:03:12.

In particular concern at the moment, they set aside $20 billion

:03:12.:03:17.

in a trust fund to compensate those that in all aspects and also the

:03:17.:03:25.

cleanup cost. And also we have the compensation claims that hit the

:03:25.:03:31.

headlines recently. That money is almost all used up. Many of the

:03:31.:03:39.

compensation claims are supposed to be fraudulent. That comes back to

:03:39.:03:44.

the deal that they struck with regulators. Many believe it is not

:03:44.:03:53.

exactly in their favour. How do you think that will play out? BP's

:03:53.:04:01.

attempts to fight those allegations have not succeeded. Indeed. It is a

:04:01.:04:11.

difficult, but probably realistic case. I have seen quotes of it being

:04:11.:04:16.

referred to as a feeding frenzy in some places. There is a lot for BP

:04:16.:04:26.
:04:26.:04:29.

to fight against. What is the long-term outlook for BP? There have

:04:29.:04:32.

been some scary stories about the ultimate damage this could cause the

:04:32.:04:39.

company. It is too early to say. There will not be a full report

:04:39.:04:49.
:04:49.:04:50.

until 2014. People might say that they are negligent or a grossly

:04:50.:05:00.
:05:00.:05:01.

negligent. Tmax four your time. A long time before BP can draw a line

:05:01.:05:05.

under that event. Having a look at some other business

:05:05.:05:09.

stories, JP Morgan is expected to settle a case today where it is

:05:09.:05:15.

accused of manipulating energy markets. The apparently used

:05:15.:05:19.

improper bidding tactics in California and the midwest to boost

:05:19.:05:23.

profits. The regulatory commission says it has found its manipulative

:05:23.:05:33.
:05:33.:05:34.

bidding strategies in 2010 and 2011. It echoes a similar case with

:05:34.:05:42.

Barclays. We are talking about Barclays, the UK bank will be

:05:42.:05:45.

reporting its results today. Analysts expected to reveal higher

:05:45.:05:52.

than forecast provisions for mis-selling of financial products.

:05:52.:05:57.

In the meantime, today's financial Times is reporting the bank is also

:05:57.:06:07.
:06:07.:06:07.

poised to launch a �5 billion rights issue.

:06:07.:06:11.

We will discuss that further when we look at today's newspaper stories.

:06:11.:06:19.

Now we can focus on Japan. It has had some dire economic news. We will

:06:19.:06:27.

now go to Singapore. This was not good at all. That is right, Sally.

:06:27.:06:36.

The latest numbers show Prime Minister Shinzo Abe is fighting an

:06:36.:06:45.

uphill battle in fighting inflation. Household spending, they were

:06:45.:06:50.

expecting a positive number. But it fell by 0.4%. Industrial output fell

:06:50.:06:59.

by more than 3%. It is the first fall in five months. The production

:06:59.:07:03.

of cars and electronic parts slowed. This is highlighting a mixed picture

:07:03.:07:11.

for demand overseas. But on the flipside, it is having an impact on

:07:11.:07:20.

factory data. It expanded by 1.4%. That is a positive number. One

:07:20.:07:26.

producer surveyed was also optimistic. There is also data to

:07:26.:07:31.

show the unemployment rate fell to 3.9% in June. His lowest point in

:07:31.:07:40.

more than four years. There is a bit of some light at the end of the

:07:40.:07:49.

tunnel. But there is more work to be done to revive the Japanese economy.

:07:49.:07:56.

Imagine living in a room just begin to fit a bed and a table. Imagine

:07:56.:08:02.

cramming into the same space with your family. According to a recent

:08:02.:08:06.

commission, that is how more than 65,000 point families live in Hong

:08:06.:08:11.

Kong. It is some of the most expensive property in the world. It

:08:11.:08:16.

is more than double official estimates. In our latest in a series

:08:16.:08:19.

looking at housing around the world, we visited some of the

:08:19.:08:25.

families. In Hong Kong it is easy to see where

:08:25.:08:29.

the ritual. But between the skyscrapers, some residents live

:08:29.:08:38.

appalling conditions. Look at this unit, it has been divided into two.

:08:38.:08:44.

This one has been divided into four. Increasingly, units are being

:08:44.:08:48.

divided into smaller and smaller units. So they can be rented out

:08:48.:08:55.

cheaper to families. For $240 per month, you can rent an apartment in

:08:55.:09:01.

Hong Kong. But elbow room costs extra. Inside each square metres of

:09:01.:09:08.

face, this man needs to leave his food next to the rubbish. -- space.

:09:08.:09:13.

He is among the 170,000 in Hong Kong crammed into small spaces.

:09:13.:09:20.

TRANSLATION: I can only blame myself for being poor. I am fortunate to

:09:20.:09:26.

have a place of my own. government says these units are

:09:26.:09:30.

health and safety hazards. Four families share a power supply meant

:09:30.:09:38.

for one. The windows do not open. If a fire breaks out, there is not an

:09:38.:09:42.

ultimate escape. The government says it will build more affordable

:09:42.:09:47.

homes. 92,000 of review next four years. But it is not enough to cover

:09:47.:09:53.

all of the people waiting for public housing. In the meantime, families

:09:53.:09:59.

like this one have to turn six square metres of space into a home.

:09:59.:10:03.

Mother and son sleep side by side. There is no room for this growing

:10:04.:10:09.

boy to stretch his legs. The worst thing about living here are the

:10:09.:10:15.

bugs, he tells me. Cockroaches would crawl into my shoes. One time I did

:10:15.:10:20.

not check before a putting them on. If it were covered with crushed

:10:20.:10:30.
:10:30.:10:31.

insects. -- my feet. These stories are warning for Hong Kong. People

:10:31.:10:36.

are struggling just to find space to sleep.

:10:36.:10:43.

Quite shocking, when you look at that reality for many people in Hong

:10:43.:10:48.

Download Subtitles

SRT

ASS